Same Signal As Before Last Crisis

Source: theeconomiccollapseblog.com

History shows that when these three readings occur there is a like chance of a market upheaval. These readings are:

A Leadership Reversal,

The Hindenburg Omen and

The Titanic Syndrome.

According to John Hussman for the Business Insider, "On Tuesday, November 14, the number of New York Stock Exchange companies setting new 52 week lows climbed above the number hitting new highs, representing a 'leadership reversal' that Hussman says highlights the deterioration of market internals. Stocks also received confirmation of two bearish market breadth readings known as the Hindenburg Omen and the Titanic Syndrome." Hussman says these three readings haven't occurred simultaneously since 2007, when the financial crisis was getting underway. It happened before that in 1999, right before the dot com crash.

Source: zerohedge.com

The Hinderburg Omen is a sell signal that occurs when NYSE new highs and new lows each exceed 2.8% of advances plus declines on the same day. On Tuesday, November 14, they totaled more than 3%.

The Titanic Syndrome is a sell signal triggered when NYSE 52 week lows outnumber the 52 week highs within seven days of an all time high in equities. Stocks most recently hit a record on November 8.

Another relevant factor is the global central banks are reversing their intervention in the stock market (which is likely the one of the reasons why the stock market is staying at the all time highs) in unison. This will probably cause the market to decline severely.

Then there is the flattening yield curve of the bonds. The market is nervous about the flattening difference between the 2 year yield and the 10 year treasury yield which have been moving closer together. A flattening curve can indicate that the curve will invert which historically means a recession in on the horizon.

Lastly, consumers continue to pile on more debt, US household debt is almost $13 trillion dollars. The federal reserve bank of New York published that total US household debt was $12.96 trillion in the three months to September.